The U.S. Securities and Exchange Commission awarded $50,000 to awhistleblower in its first payout from a program launched last yearto reward people who provide regulators with evidence of securitiesfraud.

The whistleblower helped the SEC bring an enforcement actionthat resulted in more than $1 million in sanctions, the agency saidtoday in a statement. The award represents 30 percent — the maximumallowed under the Dodd-Frank Act — of the approximately $150,000collected so far.

The agency set up a whistleblower program in August 2011 toreward individuals who provide evidence of securities lawviolations which results in sanctions of more than $1 million. Theprogram was authorized in the 2010 financial-regulation overhaul,which said awards could range from 10 percent to 30 percent of themoney collected.

“Had this whistleblower not helped to uncover the fulldimensions of the scheme, it is very likely that many moreinvestors would have been victimized,” SEC Enforcement DirectorRobert Khuzami said in a statement.

The SEC, which didn't name the whistleblower or identify therelated enforcement action, said it rejected a claim from a secondperson in the same matter because the information the personprovided didn't lead to or significantly contribute to theenforcement action.

For earlier coverage of the whistleblower provisions inDodd-Frank, see SEC Lets Whistleblowers Bypass Internal Programs andSECBounty Hunters.

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